Great Plains Energy plans $750 million mandatory convertible to yield 7%-7.5%, up 17.5%-22.5%

By Rebecca Melvin

New York, Sept. 27 – Great Plains Energy Inc. launched a $750 million offering of mandatory convertible preferred stock that was expected to price late Tuesday with a dividend of 7% to 7.5% and an initial conversion premium of 17.5% to 22.5%, according to market sources.

Great Plains is also making a concurrent offering of 52.6 million shares of common stock.

The proceeds of both offerings will be used to finance a portion of the cash consideration payable in connection with its previously announced acquisition of Westar Energy Inc.

Goldman Sachs & Co. is acting as lead bookrunning manager of the concurrent offerings.

The company plans to list the preferred shares of the New York Stock Exchange under the symbol “GXP-PRB.”

Kansas City, Mo.-based Great Plains is the holding company of Kansas City Power & Light Co. and KCP&L Greater Missouri Operations Co.

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